Hello,
We live in FL and are filing a MA nonresident return. We received a W2 form showing the annual payout from a 457b Deferred Compensation plan. The plan is setup to pay out over a 10-yr period in equal amounts, therefore, it should not be taxable in MA since we live in FL.
I cannot determine how to exclude the income. Using Turbotax Desktop to file in MA, I am prompted to enter the "Non-MA" portion of the "all states" W2 income from box 11. I enter the full amount -6,000 - in the "non-MA Portion" and click through.
Now Turbotax states "Since you have reported 6,000 of...457 plan distributions that is NOT from MA, we have subtracted that amount from your non-MA wages. (btw there are no non-MA wages). These payments are now reported as Other Income". This is very confusing. In fact, looking at Forms -
MA form 1-NR/PY shows 6,000 dollars taxable income on line 5.
The W2 form shows the 6,000 listed in three boxes - Box 1, Box 11 and box 16. And MA withheld taxes in box 17.
It's not taxable in MA. Please, how do I get Turbotax to remove this from MA taxable income? Is there a field I can override somewhere?
